Solar Philippines Nueva Ecija Corp. (SPNEC) said ssits P2.8 billion stock rights offering (SRO) will catalyze its planned 10 gigawatt (GW) investment in renewable energy in the country.
Leandro Leviste, Solar Philippines founder, said in a statement on Friday at an industry standard cost of $700,000 per megawatt (MW) and revenue of P6 million per MW per year, the 10 GW projects will require a total non-land capital expenditure of $7 billion. With a projected annual revenue of P60 billion, Leviste pointed out the projects would be catalyzed by just a fraction of the project development cost.
Solar Philippines is the mother company of SPNEC.
“As a project developer, our job is to consolidate land and permits so the projects can secure off-take and become construction-ready, to enable the projects to raise financing to complete the capex with the help of partners. If we execute successfully, then this SRO can catalyze an order of magnitude more in funding, for the benefit of SPNEC’s shareholders, its partners, and other stakeholders,” Leviste said.
Brokers have begun taking orders for SPNEC’s SRO since August 22 and will run until August 30 or 31.
“This gives time for brokers to consolidate orders for submission to the Philippine Depository & Trust Corporation by September 1, in compliance with the SRO’s schedule,” SPNEC said in a statement.
SPNEC is looking to offer to shareholders 1.88 billion option shares a price range of P1.50 to P1.76 apiece, the proceeds of which it said it will use to finance project development of the 10 GW portfolio.
